Rebuilding Trust from Within: Tesco’s Decade of Internal Communication Transformation
Over the last ten years, Tesco has undergone a profound transformation in its internal communication strategies, resulting in a stronger connection between leadership and employees. Under the guidance of Christine Heffernan, Tesco’s Group Communications Director, the retailer has reshaped its communication approach, placing employee engagement and trust-building at the forefront. This article unpacks Tesco’s internal communication evolution, analysing its strategies, phases, and real-world outcomes to offer actionable insights for other organisations seeking to rebuild their internal reputation and strengthen employee engagement.
Background and Context: A Brand in Crisis
In 2014, Tesco faced a major crisis—an accounting scandal, coupled with perceptions of market dominance, significantly eroded trust both internally and externally. However, this challenging period catalysed a strategic shift. Tesco’s leadership set three key objectives: improving competitiveness, reinforcing the balance sheet, and rebuilding trust and reputation. Prioritising trust was a bold move, positioning employees at the heart of its transformation.
Phase 1: Gaining Employee Trust Through Engagement
The initial phase focused on gaining “permission to be heard” from employees. This began with a company-wide listening exercise to understand staff perceptions of Tesco’s values and leadership. Heffernan and her team recognised that trust-building required genuine dialogue and active listening.
The Role of Listening in Organisational Change
Effective internal communication is more than information dissemination; it is about establishing meaningful dialogue. Research by Mishra el al (2014) underscores the importance of two-way communication in building internal trust. Organisations that create channels for employee feedback and act on it demonstrate respect and value for their workforce. Tesco’s 2014 listening campaign exemplified this, identifying a gap between corporate values and daily practices, leading to a renewed purpose statement: “Serving customers, communities, and the planet a little better every day.” This redefined mission guided both internal and external messaging, laying a foundation for the next phase of transformation.
Phase 2: From Purpose to Practice
With a new purpose defined, Tesco focused on making this vision a reality internally. The strategy shifted to an “inside-out” approach—treating employees as the primary audience and recognising their influence on the company’s reputation. With over 330,000 employees, Tesco understood that consistent, credible internal messaging would directly impact its external image.
Implementing the Purpose: Actionable Programs
Tesco introduced tangible initiatives based on employee feedback. A key example is its collaboration with FairShare and FoodCloud, launching a food redistribution program to tackle surplus food waste. The initiative, driven by internal advocacy, has since donated over 200 million meals. This showcases how aligning corporate purpose with employee-driven initiatives can yield substantial social impact and reinforce internal credibility.
Key Insights from Tesco’s Internal Communication Transformation
Tesco’s journey provides a blueprint for organisations aiming to rebuild trust and align employee engagement with strategic goals. Key takeaways include:
- Prioritising Employee Engagement: Listening to employees and incorporating their feedback into strategic planning was crucial in restoring internal trust.
- Aligning Purpose with Action: Transforming purpose into tangible programs (e.g., food redistribution) reinforced the credibility of internal messaging.
- Leveraging Digital Platforms: Implementing “FirstUp” empowered employees to communicate and collaborate more effectively, supporting a cohesive culture.
Further Reading and Resources
- Two-Way Symmetrical Communication: This model by Grunig and Hunt (1984) emphasises ethical and effective strategies for creating open dialogues between organisations and employees.
- Employee Advocacy and Brand Reputation: Helm (2011) found that when employees are aligned with organisational values, they become strong brand advocates.
- Digital Engagement in Internal Communication: Ruck and Welch (2012) highlighted the role of digital platforms in creating inclusive and responsive communication channels
Conclusion
Tesco’s decade-long journey under Christine Heffernan’s leadership is a compelling example of how strategic internal communication can transform an organisation’s culture and reputation. By prioritising employee engagement, aligning actions with corporate values, and embracing digital tools, Tesco rebuilt internal trust and strengthened its external brand. For organisations navigating similar challenges, success lies in listening to employees, maintaining transparency, and being willing to innovate
Adam Baldock-Apps
Growth Marketing Manager
Passionate Marketing and Growth leader. Driving Digital Innovation and Brand Growth, expert in Tech and SaaS Marketing.
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